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Post-Brexit property slowdown sees London rents fall for first time in eight years

There has been further evidence that London’s property market has slowed following last year’s Brexit vote after newly released figures have revealed a fall in rental prices in the capital for the first time since 2009.

Averages rents in April fell 1.2% year on year in London according to new data released by HomeLet with figures broadly flat for the rest of the country too.

Only the South East of the UK also registered a dip in rental values last month with Wales and the North East experiencing the largest increases by 2.3% and 2.2% respectively.

The figures mark the first time rents have fallen in London since December 2009 with average prices now standing at £1,519 compared to £1,537 in April 2016. Rents were also down for the month with the average falling by 1.7% compared to March’s average rent of £1,546.

Touching upon the UK-wide trend, HomeLet’s Chief Executive Officer, Martin Totty commented: “Rents have been rising at a much more modest pace across the whole of the UK in recent months, with lower levels of rental price inflation and even falling rents seen in areas of the country where prices were previously rising most quickly.

“This trend is ongoing: we continue to see landlords’ and letting agents weighing tenant affordability considerations very seriously.”

Today’s figures add to the welter of evidence that London’s property market is suffering in the wake of the Brexit vote with a glut of rental properties clogging up the market and bringing down rents.

The top end of property market in particular has suffered in recent months, despite the depreciated pound opening up the possibility of bargain buys for overseas investors, with figures released by LCP last week showing a 41% decline in new build sales at the end of last year.

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